FAA targeting Verizon contract in favor of Musk’s Starlink, sources say
Turning the $2.4 billion project over to Musk’s company would be a major test of conflict-of-interest rules in government contracting.
February 26, 2025 at 6:36 p.m. EST Yesterday at 6:36 p.m. EST

A screen shows air traffic activity over the United States on Nov. 16, 2023, at a Federal Aviation Administration Air Traffic Control command center. (Matt McClain/The Washington Post)
By Ian Duncan, Hannah Natanson, Lori Aratani and Faiz Siddiqui
The Federal Aviation Administration is close to canceling a $2.4 billion contract to overhaul a communications system that serves as the backbone of the nation’s air traffic control system and awarding the work to Elon Musk’s Starlink, according to two people briefed on the plans.
The move to cancel a major contract in favor of a venture led by Musk — who is leading President Donald Trump’s disruptive overhaul of the federal government through the U.S. DOGE Service — would represent a significant test of protections against conflicts of interest in government projects. It would be an especially extraordinary step for the typically cautious FAA, whose systems are vital to the safety of millions of air travelers every day.
The existing contract was awarded to Verizon in 2023, with the aim of upgrading a platform that different air traffic control facilities and FAA offices use to communicate with one another.
Musk has personally taken aim at Verizon on his social media platform X in recent days, saying on Monday: “The Verizon system is not working and so is putting air travelers at serious risk.”
Verizon did not respond to a request for comment. Joseph Russo, a Verizon executive vice president, said at an event hosted by Barclays Bank on Tuesday that Starlink’s efforts at FAA might be complementary to Verizon’s. Verizon was offering the “reliability and performance” that the FAA needed, and its system was expected to be operational soon, Russo said.
The FAA said in a statement Wednesday that “no decisions have been made” about the Verizon project.
A team of employees from SpaceX, Starlink’s parent company, has been working inside the FAA in recent days, charged by the Trump administration with helping modernize the agency’s aging technology. Ted Malaska, one of them, shared a picture on X on Thursday saying he was excited to be working with the FAA, and thanking Musk and Trump for their “vision and focus on safety.”
“I challenge anyone to question the honesty and my technical integrity on this matter,” Malaska posted Wednesday. “I am working without biases for the safety of people that fly.”
Several of the SpaceX employees now have FAA email addresses, according to two people who have seen the addresses, speaking on the condition of anonymity for fear of retribution. FAA regulates SpaceX and has alleged that the company has violated safety rules relating to its rocket launches.
In a statement Monday, the FAA said it was testing Starlink systems at facilities in New Jersey and Alaska, in hopes of providing more reliable connectivity in remote locations. Elements of the FAA’s deliberations were previously reported by the Associated Press and Bloomberg News.
Transportation Secretary Sean P. Duffy said on Fox News this week that the government had been too slow to modernize its technology and that the new administration was ready to move quickly.
“We’re going to look at a year, year-and-a-half time frame and do massive upgrades, improve the systems, help air traffic controllers, keep our skies safer,” Duffy said.
But the Starlink plan adds to Musk’s existing conflicts of interest at the FAA relating to SpaceX, according to John P. Pelissero, the director of an ethics center at Santa Clara University.
Pelissero said it appears that “because of Musk’s current position in DOGE and his closeness to Trump he and his company are getting an advantage and getting a contract.”
“Who’s looking out for the public interest here when you get the person who’s cutting budgets and personnel from the FAA, suddenly trying to benefit from still another government contract?” Pelissero said.
The Transportation Department, DOGE and SpaceX did not respond to questions on how the process of changing contractors has been handled and whether potential conflicts of interest have been reviewed. Trump has said Musk will not be permitted to participate in decisions that pose a conflict of interest.
Verizon was tapped in 2023 to build a system called the FAA Enterprise Network Services Program or FENS, replacing a system that dates to 2002. The contract had a 15-year lifespan, and the system is intended to connect some 4,600 sites, according to the FAA.
The agency was scheduled to make a final decision on whether to start paying Verizon for the contract next month, said one of the people, who spoke on the condition of anonymity because they were not authorized to speak publicly.
Instead, Musk’s team determined the job should go to Starlink, the person said. But the process for unwinding a contract and awarding it to another company is lengthy and has not been followed in this case so far, the person said.
Several senior FAA officials have refused to sign paperwork authorizing the switch, according to the person, who has been briefed on the internal deliberations and resulting fallout, so Musk’s team is now seeking help from the acting administrator of the agency, Trump appointee Chris Rocheleau, and Duffy.
Outside reviews of the FAA’s technology have repeatedly concluded in recent years that it is woefully out of date and that the agency is too slow to make upgrades. A 2023 safety review pointed to technological problems as one factor that was creating “risk” in the aviation system, a problem the Verizon contract is supposed to help solve.
Jessica Tillipman, the associate dean for government and procurement law studies at George Washington University School of Law, said terminating a contract can be expensive, time consuming and could lead to litigation.
“When the government terminates a contract it’s not like it shuts off the spigot,” she said. “It’s expensive to wind down a contract. It’s very expensive and it’s complicated.”
She said negotiating a settlement can take a year.
In awarding a new contract, agencies generally must comply with rules for competitive bidding. There are exceptions, including urgency, she said.
“But the question is, how is it so urgent when you already had a contractor dealing with it?,” said Tillipman, adding that there are many different guardrails within the federal acquisition system to make sure things are fair, transparent and efficient.
“However, in the last few weeks she said many of these guardrails have been tested, which will likely lead to litigation,” she said.
Washington Post researcher Aaron Schaffer contributed to this report.
correction
A previous version of this story mentioned the federal Competition in Contracting Act in relation to the Federal Aviation Administration procurement. The FAA is exempt from the act. The story has been corrected.
https://www.washingtonpost.com/business ... a-verizon/
From a comment:
Will be interesting to see the SpaceX paradigm of use failure to achieve success applied to air traffic control.